Aggregate Unintentional         Underlying Asset Completion Resulting   Benchmark Managers' Allocation Portfolio Completion Country Weight Weight Deviations Weight Deviations Currencies           Australian dollar 0.58% 0.06% -0.52% 0.52% 0.00% Canadian dollar 0.16 0.48 0.32 -0.32 0.00 Danish krone 0.33 0.37 0.05 0.00 0.05 Euro 11.07 10.27 -0.80 0.76 -0.05 Hong Kong dollar 0.23 0.08 -0.16 0.00 -0.16 Japanese yen 8.01 7.32 -0.68 0.68 0.00 New Zealand dollar 0.24 0.00 -0.24 0.24 0.00 Norwegian krone 0.08 0.00 -0.08 0.08 0.00 Singapore dollar 0.13 0.39 0.26 -0.26 0.00 Swedish krona 0.36 0.51 0.16 -0.16 0.00 Swiss franc 0.35 1.57 1.22 -1.22 0.00 British pound 2.45 4.20 1.74 -1.74 0.00 U.S. dollar (cash) 3.00 8.74 5.74 -5.59 0.16   27.00% 34.00% 7.00% -7.00% 0.00% Total 100.00% 100.00% 0.00% 0.00% 0.00% Tracking error     2.18%   0.45% An Example Table 25.4 shows a recent GTAA overlay portfolio for one of our clients. In this portfolio, the client permits trading in all Commodity Futures Trading Commission (CFTC)-approved equity index and bond futures,18 developed market currency forwards, and country equity index funds. The client requires that holdings consist only of assets in the benchmark, and permits a limited degree of beta extension in both stocks and bonds through TAA. The active risk target is 2.5 percent. The positions in this portfolio represent active country and asset class deviations derived from four independent GTAA strategies: (1) asset class timing, (2) country selection within global equities (hedged), (3) country selection within global bonds (hedged), and (4) currency selection. Based on our experience with each of these strategies as well as our expectations from Grinold's Law, we allocate risk across the four strategies, which results in the most risk from currencies, the second most from global equity markets, the third most from global bond markets, and the least from asset class timing. 18The U.S. Commodity Futures Trading Commission (CFTC)-in a futile and ridiculous attempt, in our view, to protect investors from themselves-does not permit U.S. investors to trade futures in undiversified indexes or on exchanges it deems unsafe to the investor. The Netherlands' AEX and Switzerland's SMI indexes are the most prominent global futures not approved by the CFTC.